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Page 1 | Proprietary and Copyrighted Information
IPSASB: Update
Lindy Bodewig
IPSASB Incoming Member
Chief Director: Technical Support Services, National
Treasury South Africa
ACCA Global Public Sector Conference
February 2017
Page 2 | Proprietary and Copyrighted Information
IPSASB introduction and background:
Session outline
• IPSASB development phases to date
• The composition of IPSASB
• Strategic Objective
• High Level Look at Work Program
• Structure and Governance
• Momentum in IPSAS adoption
• Challenges, demands and opportunities
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IPSAS development phases to date
1997 - 2001
• IFAC PSC starts IPSAS development programme
• First 21 IPSASs based on IASB equivalents, interpreted as necessary
2002 - 2009
• Development of first public sector specific IPSASs (22 - 24)
• IFRS convergence (IPSASs 25 – 32)
• Start of Conceptual Framework project
2010 - 2015
• Conceptual Framework completed 2014
• First Time Adoption & IFRS convergence maintained (IPSASs 33-38)
• First public work plan consultation
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Where do the IPSASB members come from?
Latin America/Caribbean
North America
Europe
Africa/Middle East Australasia/Oceania
Asia
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IPSASB Strategic Objective
Strengthening Public Financial Management and knowledge globally through increasing adoption of accrual-based IPSASs by:
• Developing high-quality financial reporting standards
• Developing other publications for the public sector
• Raising awareness of the IPSASs and the benefits of their adoption
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Current work programme – Emphasis on public sector
specific project but also maintaining IFRS alignment
Project Public sector
specific
IFRS
convergence
Social Benefits
Revenue & Non-Exchange Expenditure
Financial Instruments
Heritage
Public Sector Measurement
Infrastructure Assets
Leases
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IPSASs implementation – Position in 2015
Still great diversity in current central government accounting landscape
Source: PWC Global Survey on Accounting and Reporting by Central Governments (2nd edition)
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IPSASs implementation - Future plans
But the 5-year trend toward accrual accounting is clear………
Source: PWC Global Survey on Accounting and Reporting by Central Governments (2nd edition)
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IPSASB: Structure and the Standard-Setting Process
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Governance and Advisory Arrangements (1)
Public Interest Committee (PIC)
Oversee governance & standard-setting activities
• World Bank, IMF, OECD, INTOSAI co-chairs
• 3 meetings to date
• Reviewed and advised on: • Appointments of:
• IPSASB Chair & Inaugural Consultative Advisory Group (CAG) Chair
• Members: IPSASB & CAG
• IPSASB & CAG Terms of Reference
• IPSASB due process
• Final Standards – due process application: • Applicability of IPSASs & Improvements to IPSASs 2015
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Stronger Governance and Advisory Arrangements (2)
Consultative Advisory Group (CAG)
Advise IPSASB on key project issues, strategy, work plan
• Inaugural Chair & Members appointed
• Composition:
• 50% – Preparers/Users
• Audit organizations – Including Forum of Firms Representative
• Economic development and regulatory organizations
• Regulatory organizations
• Professional Accountancy Bodies
• Individuals
• Initial meeting: June 2016 - Toronto, Canada
• Second Meeting: December 2016 – Stellenbosch, South Africa
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• Delivering the work plan:
• 6 important public sector projects being developed from scratch
• Technically difficult
e.g. first Social Benefits project put on hold after 6 years pending completion of Conceptual
Framework
• Longer timelines due to need for stakeholder engagement
(CP, ED then IPSAS)
• Building relationships with national standard setters:
– Inaugural Public Sector Standard Setters Forum
• Strengthening advocacy from key international institutions
– IMF, World Bank, regional development banks
• Bedding down relationships with PIC and CAG
12
Challenges
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• PIC:
– Deliver key projects – Social Benefits in particular
– Increasing Board diversity (geography and gender balance)
• Existing and potential adopters:
– Tackle long list of other potential public sector projects
e.g. sovereign powers / natural resources
– Maintain IFRS convergence
– Requests for adoption and implementation guidance
– Expand scope to include not-for-profits?
• Potential funders:
– Perceptions and clarity about IPSASB / IFAC relationship and mechanics important
13
External demands
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Opportunities
• European Public Sector Accounting Standards
(EPSAS) – Active monitoring and engagement
• Growth in IPSAS Adoption– Latin America, SE
Asia, Africa, Canada initial strategic question,
• 2017 = 20th Anniversary of starting IPSASs
development
• Working with IFAC Accountability. Now.
• Next Strategy Work Plan consultation (in 2018 for
2019 onwards?)
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Developing the Next Strategy and Work Plan
Multi-year Strategy (2019-), Work Plan to
implement/operationalize Strategy
PIC
advice
CAG input
Public consultation
Stakeholder outreach
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Questions, Discussion & Further Information
• Visit our webpage http://www.ipsasb.org/
• Or contact us by e-mail : IPSASB Chair: [email protected] Technical Director: [email protected]
